COVID-19’s Potential Impact on Cities: Five Trends and Indicators to Watch

Unlike prior crises where cities recovered out of necessity, the first global pandemic of the digital age changes things. With the advent of a post-modern digital economy enabled by telecommuting, teleconferencing, telelearning, and e-commerce, the pandemic has accelerated a digital transformation where cities no longer need to be physical places to foster innovation and economic activity. This MTI perspective explores the potential risks of a K-shaped where suburban communities recover and urban centers do not. Demographics, home sales, housing affordability, telework, and e-commerce may be important indicators to watch to understand what the “new normal” may look like and to guide the post-pandemic recovery. Policies may be needed to discourage outward growth and to support urban revitalization in a new world where an increasing percentage of the workforce telecommutes.